Banks Increase Borrowing from Fed During Crisis.
TL;DR Summary
Banks are borrowing more from the Federal Reserve's loan programs to access funding as turmoil sweeps the financial system in the wake of several high-profile bank failures. The Fed is lending to banks against their financial assets as if those securities were still worth their original value to insulate banks from having to sell those securities at big losses. Two key programs together lent $163.9 billion this week, according to Fed data released on Wednesday, much higher than normal. The elevated lending underlines a troubling reality: stress continues to course through the banking system.
- Banks Are Borrowing More From the Fed: What to Know The New York Times
- Banks ramp up use of new Fed facility created during crisis CNBC
- Banks Are Still Drawing on the Fed for $164 Billion of Emergency Cash Bloomberg
- Credit unions and community banks worry Fed moves will squeeze their customers The Philadelphia Inquirer
- Emergency borrowing from Fed dips, a sign that bank stress may be easing MarketWatch
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